By: Tomas Ronolski - AllPennyStocks.com News

Friday, July 11, 2014

Whether it’s understood exactly how it works or not, nearly everyone now knows what VoIP, or Voice over Internet Protocol, is nowadays. It has been around for years, with many computer owners 15 years ago not understanding that they actually could use their computer as a telephone, but Skype made it a household name that is widely used and accepted by individuals and enterprises. Despite some questions over security, many of which are being resolved, VoIP has revolutionized how people communicate and grown into a massive industry with players large and small taking a piece of a market estimated around $76 billion last year. That’s compared to only about $30 billion five years earlier. CounterPath Corporation (TSX:CCV) (NASDAQ:CPAH), a provider of Session Initiation Protocol-based VoIP softphones, server applications and Fixed Mobile Convergence solutions, has established a footprint in the telecommunications business with some major clients in its portfolio. The company’s solutions are used to power the voice and video calling, messaging and presence offerings for the likes of Alcatel-Lucent (NYSE:ALU), AT&T (NYSE:T), Verizon (NYSE:VZ) and Rogers (TSX:RCI.B), to name a select few.

It has been a tough year for CounterPath stock, with Toronto-listed shares sliding from a 52-week high of $2.25 last July to just over $1.00, but technical traders may take note that the stock has found solid support around $1.10. On four different occasions in the past year, the stock price has moved upward off that level, including this week bouncing from a low of $1.08 to a high of $1.34.

On Thursday, the company reported its financial results for the fourth quarter and full fiscal year ended April 30. Revenue totaled $3.7 million, down from $4.0 million in the same quarter of fiscal 2013, but up from $2.6 million in the third quarter. GAAP gross margin was essentially flat at 84 percent. CounterPath swung to a net loss of $0.4 million, or 1 cent per share, versus net profit of $0.1 million, or nil per share, in the year prior quarter. On an adjusted basis, which excludes one-time items, net loss was $0.3 million, compared to net income of $0.4 million, in Q4 fiscal 2013.

Revenue slid for the fiscal year to $11.7 million from $15.2 million last year. Net loss was $4.1 million, or 14 cents per share, compared to net profits of $0.5 million, or 1 cent per share, a year earlier. Adjusted net loss was $4.8 million, or 11 cents per share, versus a net loss of $0.3 million, or 1 cent per share.

Remaining positive on changes, new partners, new and upcoming products and a greater focus on enterprise sales, CounterPath president and CEO Donovan Jones commented, “We posted strong sequential revenue growth in the fourth quarter as we leveraged our market position and refined our sales strategy."

“Looking ahead into fiscal 2015, we will continue to build our channel and further develop our sales organization as we return to growth in key markets,” added Jones in today’s statement.

Technical traders will be looking for support to hold again as shares of CCV edged up $0.09 to $1.21 as the day winds towards a close.

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